What is a framework agreement? A framework agreement is an umbrella agreement which a party enters into with one or more suppliers (who may be contractors, sub-contractors, suppliers or consultants) to establish the terms governing a long term relationship during which one or more contracts may be awarded by the employer to the supplier(s). In construction, framework agreements are commonly entered into between employers and a number of contractors, suppliers or consultants and sometimes between contractors and a number of sub-contractors, suppliers or consultants. Notwithstanding these various relationships that may be subject to a framework agreement, for ease, this Practice Note refers to the ‘employer’ and the ‘supplier’. Framework agreements are used in the private sector but are more widely used in the public sector, both by government departments and bodies and by local authorities. Though a framework agreement, in most cases, is not considered to be a contract itself, the procurement by a contracting authority to establish a framework agreement is subject to public procurement rules. How does a framework agreement